MCDONALDS BREAKFAST

LAUNCH DILEMMA

Aluri Sasank
MBAK1702
HISTORY
• It was mid-July 2011,when Jamil Hussian (marketing
manager),Atif Abbass and Ali Raza(marketing
executives)were sitting in the meeting room of Lakson
square building , Karachi , in order to discuss the fate of
McDonalds breakfast menu.
• In the Pakistan market , was unable to convince his
team members who thought that the market was not
ready to accept the breakfast option since there was a
huge difference between Pakistani lifestyle and western
lifestyle.
• Restaurants like dominos and pizza
hutt which were very popular in
pakistan did not offer any breakfast
option.
 BACK GROUND

• MCDONALDS ,a company known for its

hamburgers was founded by two brothers Richard
and Maurice McDonalds in San Bernardino,
California in 1948.
• Which was later bought by the franchise agent,
Ray Kroc in 1955.
• McDonalds was present more than 33000
locations world wide.
• In Pakistan , food was a source of
entertainment .
• This could partly be attributed to the fact that
their were not many entertainment options
available and partly due to the Pakistani’s
love for good food.
• McDonalds brought the branded food
concept to Pakistan.
 CONSUMER BEHAVIOUR

• The eating habit of the Pakistani consumers

varied due to numerous reasons.
• According to a research conducted by Gallup
Pakistanis research,55% of Pakistanis ate
meals three times a day.
• About 37% had two meals ,5% had one meal
and 5% had meals more than thrice in a day.
.
LIGHT AND HEAVY MEAL PREFERENCES
Types 2003% 2006% 2008%

Heavy lunch 25 19 18

Heavy 16 23 19
dinner
Both meals 32 34 18
heavy
Both meals 26 24 44
light
No response 1 - 1
AVERAGE MEAT CONSUMPTION IN A
HOUSEHOLD PER MONTH

AREA CHICKEN( BEEF(KG) MUTTON(K

KG) G)
All Pakistan 4 4 3
Punjab 4 3 3
Sindh 4 4 3
Baluchistan 7 9 6
 CLASS WISE BREAKFAST CONSUMPTION
Breakfast Items Class wise consumption
Tea All classes
Roti/bread/paratha All classes
Egg SEC A and B (C not an
regular basis)
Cereal(corn flakes) SEC A (B and C not an
regular basis)
Cheese SEC A(B and C not an
regular basis)
Frozen food(nuggets) SEC A and B
BREAKFAST ITEMS
ITEMS 2006% 2008% 2009%
Paratha 45 41 49
Bread 10 11 10
Tea 11 13 9
Rusk - - 7
Roti with 34 33 18
Curry
Nothing - - 2
 Socio-economic classification
Occupation of chief Illitera Less Upto 5-9 Upto Intermedi Gradua Postgrad
earner te than classes seconda ate te uate
class 5 ry level
Unskilled worker E E E E E D D
Petty traders E E E E E D D
Skilled worker D D D D D D C2
Non- executive staff D D D D D D C2
Supervisor level D D C2 C2 C2 C1 C1
Small Shopkeeper D D C2 C2 C2 C1 C1
level/business man
Lower/middle C1 C1 C1 B B B B
executive
Self C1 C1 C1 B B B B
employed/professional
Medium businessman C1 C1 C1 B B B B
Senior B B B A A A A
executive/officer
Large business factory A A A A A A A
SOME OF THE SEC A CLASS WORKING MEN AND
WOMEN GOT THEIR QUICK WEEKDAY BREAKFAST
SOLUTIONS
SEC A and B
Non
Working Working

Not an active : social life,

prefers to stay at home
Not an active social life prefers homemade foods
prefers to stay at home
after work

Active social life:

prefers seating out
Active social life
frequently would vary
prefers eating out
with income
 COMPETITION
• The trend of having traditional tea,Paratha or Halwa
,Puri for breakfast ,the industry was dominated by
the presence of local road side dhabas and hotels
that offered the serving.
• Not only was the serving cheap but it also satisfied
hungers.
• The emergence of cafes and restaurants(both local
and foreign)in the last decade had made the food
industry very expensive.
• Brought the awareness among people about the
continental food and but also develop the taste palette
of the consumers.
• Few of the restaurants/cafes actually served breakfast.
• Restaurants offered both traditional as well as western
cuisine to cater to a larger audience of food lovers.
some of the brands were:
1.Irelands butlers chocolate café
2.Espresso
3.DUNKIN DONUTS
4. Others
1.Irelands butlers chocolate
cafe
• It was opened in Karachi on December 2009 on main
zamzama boulevard.
• It offered breakfast mock tails, smoothies, shakes,
waffles, truffles, ice cream, sorbets and chocolates.
• It had recently opened its outlet at the domestic and
international terminal of E-Azam international airport.
The price range for breakfast was Rs 300 and above
2.Espresso
• Espresso was launched in 2004. It operated in Karachi and Lahore.
• It offered a menu packed with mouth watering appetizers, a
selection of sandwiches,wraps,pastas,paninis and divine desserts.
• A sizeable range of teas,smoothies,hot and cold beverages and an
array of coffees all created from the finest imported and local
ingredients were available at the cafe.
• The breakfast menu ranged from omelets, pan cakes ,croissants.
Kids breakfast with price starting from Rs.250.
• It also offered delivery services in certain areas of Karachi & Lahore
these included the upper class residential areas & office localities.
• It offered privilege cards as well it had 4 outlets in Karachi & one in
Lahore.
3.DUNKIN DONUTS
• Dunkin donuts started its operation in
Pakistan in 2000.
• It had nine outlets in Karachi, five in Lahore,
three in Islamabad & one in Peshawar.
• Its operation were control in Karachi by IFL
and in Lahore and in Islamabad by Phoenix
Food(pvt)ltd.
OTHERS
• Other popular players in informal eating out
category included cafe-9,cafe-79,gloria jeans ,
coffee, tea and company(CTC)and roasters.
• They had breakfast menu ranging from
croissants,pizza,sandwiches and coffee
• These restaurants had an up market image
• The breakfast at these fancy restaurants started
at Rs900
MCDONALD'S CUSTOMER PROFILE
• McDonald’s catered to the urban population of
Pakistan .
• The top 3 segments of McDonalds customer
categorization;
1.The teens(15-25years)
2.young adults(20-34years)
3.families with kids(FWKS)(30-49years old,
married with kids)
McDonald’s developed it’s loyality measurements

Behavioural loyal : People True Loyal : People using

using McDonalds most McDonalds most often
often but prefer another and whose favourite QSR
quick service restaurants restaurant is McDonalds
too

Competitive Loyal: People Attitude Loyal: People

using another QSR most using another QSR most
often and prefer another often and whose favourite
too is McDonalds
Per cost entire menu depending on location

Item Price(Rs)
Chai 15
Doodhpati 20
Paratha 10
Anda 1
Puri 12
Halwa 20/plate
Channa/aalo 30/plate
MCDONALD’S IN INDIA
• McDonalds launched its breakfast menu in 2009
• 60% of young Indians in Mumbai and other metropolis
had at least one breakfast outside in a week
• McDonald's breakfast was aimed to serve as the next best
substitute to idlis, dosas and vadapavs
• Keeping the masses in mind
• The campaign was launched after six months after initial
test marketing in key cities in India
 Indian breakfast menu

Items Price(In Indian

rupees)
Idli McMuffin 35
Steamed Vegeterian McMuffin 35
Paneer & corn McMuffin 40
Sausage McMuffin 45
Sausage McMuffin with egg 55
Steamed corn 20
Crisp hash brown 20
Hot Data
cakes
as perwith
may 11,maple
2011 syrup and butter 55
Big breakfast platters 99
 MCDONALD’S IN MALAYSIA

• Malaysia is a metropolitan country

• McDonalds realised the potential in the economy
and decided to invest in the breakfast sector
• They used two pronged communication approach
targeting both adults and families
• They offered on-the-go weekday meals for working
class
 Malaysia Weekdays menu

Weekdays menu Items Price(RM)

Sausage McMuffin with egg 4.5

Sausage McMuffin+coffee/tea 4.00

Egg McMuffin with chicken roll+coffee/tea 4.5

Two piece of hot +cake+coffee/tea 4.5

Chicken McMuffin +cake+coffee/tea 4.5

Data as per may 11, 2011

 A la carte breakfast offerings
Menu Espresso Gloria Jeans Roasters Cafe 9 Cafe 76 Necos
Oatmeal porridge 195
Chicken fagita omelet 265 325
Big steak omelette 375
Steak and eggs 385
Breakfast yougurt 155
Aussie omelette 350
Egg white omelet 350
Cheese omelet 350 345 325
Mushroom/herb omelet 350 329
Tomota/ cheese and mushroom omelet 375 275 395
Cheese, pepperoni and onion omelet 375 325
Pakistani omelet 350 265 300 325 399
Spanish omelet 375 300
Scrambled eggs 325 300 239
Poached/classic fried/boiled eggs 275 225 285 275 229
Kids breakfast 315
Bagel with cream cheese 295 265 399
Breakfast burrito 475
Chicken frankfurters 215
Baked beans 65
Pancakes with maple syrup 265 225 230 269
French toast with maple syrup 265 215 265 300 329
Waffles with ice cream and maple syrup 315 275 295 319
Croissant with cream cheese strawberry 275 275
Preserve/ orange marmalade
Egg and cheese sandwich
Buttermilk pancakes 225 265
Banana pancakes 265
Blueberry pancakes 295
Chocolate hazelnut pancakes 295
 Details of McDonalds Outlets
City Location Hyderabad Autobhan
Lahore Railways Kiosk &MDS
Jail road Faisalabad Sitayana road
Fortress Stadium
Park lane tower Sialkot Clover plaza
Main Gulberg
Ali towers Rawalpindi Jinnah park
Allama Iqbal town
Model town Islamabad McDonalds F-9
Defense 1 park
Defense 3
Karachi Airport
Dolmen mall Hyderi
Stadium road
Dolmen mall Tariq road
Lakson square
Najeeb center
Park towers
Corniche
Data as per Interview with manager
Aluri Sasank
1702